There is already some evidence of insider trading, although the extent is not yet known. It is important in the early development of the market for there to be a firm government policy against insider trading and a clear willingness to intervene in case it is suspected. * Prohibition: Article 9 of the Law on Securities prohibits a person from: * using inside information in order to purchase or sell securities for that person him/herself or for a third party; * disclosing or giving inside information to another person; and * advising another person to purchase or sell securities on the basis of inside information.
For purposes of the provisions of Article 9, the Law defines "inside information" to include: "information about a public company or a public fund, which information has not yet been disclosed to the public and which, if disclosed, could have an impact on the price of the securities issued by such public company or public fund."

* Elements Of The Prohibition * Covered securities: By referring to securities issued by a public company/public fund, the prohibition is broad enough to cover both listed securities that are traded on the stock exchange, as well as unlisted securities that are traded on the OTC market. In addition, by making a general reference to "securities," the prohibition against insider trading appears to cover all types of securities as contemplated under the Law. They include: stocks, bonds, and investment fund units,